While the bankruptcy world’s eyes are locked on the genetic code up for auction in 23andMe’s chapter 11 proceedings, we are also focused on a more old fashioned asset: New York City real estate. 19 East 75th Street (the...more
A federal district judge recently affirmed a bankruptcy judge’s ruling that a non-creditor was entitled to actual notice of an injunction that would bar the non-creditor from suing the debtors’ insurance carriers. In re Boy...more
The U.S. bankruptcy system is generally an efficient mechanism for companies and individuals seeking to restructure their debts and obtain a fresh start. However, the effectiveness of the bankruptcy system relies on integrity...more
The Barton doctrine provides that a court-appointed receiver cannot be sued absent “leave of court by which he was appointed.” Barton v. Barbour, 104 U.S. 126, 127 (1881).
“An action against a receiver without court...more
1/29/2025
/ Appeals ,
Appellate Courts ,
Bankruptcy Code ,
Bankruptcy Court ,
Bankruptcy Trustees ,
Barton Doctrine ,
Chapter 11 ,
Debtors ,
Fiduciary Duty ,
Jurisdiction ,
Stays
The Bankruptcy Code provides immediate and automatic protection to a debtor upon the filing of a bankruptcy petition, staying legal claims and debt collection efforts against a debtor—subject to certain exceptions. See 11...more
At the motion to dismiss stage, courts usually won’t consider affirmative defenses. This issue arose recently in a preferential transfer case, where a defendant sought to dismiss a complaint by arguing it was a mere conduit,...more
In Harrington v. Purdue Pharma L.P., 144 S. Ct. 2071 (2024) (“Purdue”), the Supreme Court held that the Bankruptcy Code does not authorize nonconsensual releases of nondebtors as part of a chapter 11 plan. The Court narrowly...more
8/1/2024
/ Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Harrington v Purdue Pharma L P ,
Indemnification Clauses ,
Non-Debtors ,
Preliminary Injunctions ,
Purdue Pharma ,
SCOTUS
At a hearing in mid-March, the Delaware bankruptcy court held Camshaft Capital Fund, LP, Camshaft Capital Advisors, LLC, Camshaft Capital Management (collectively, “Camshaft”) and William Cameron Morton, principal of...more
In 2019, Congress enacted the Small Business Reorganization Act, which created subchapter V within chapter 11 of the Bankruptcy Code. Congress’ intent was to create a more cost-efficient and streamlined restructuring process...more
The Fifth Circuit recently ruled that a debtor can sell a preferential transfer action under Bankruptcy Code section 363 to a purchaser that is not a representative of the bankruptcy estate. Briar Cap. Working Fund Cap.,...more
Sometimes we blog about cases with unusual fact patterns. The cases don’t stand for any overriding legal principle. They might not have application beyond the parties to them. But they can make for good reading, giving...more
When he was appointed by the Eleventh Circuit, U.S. Bankruptcy Judge Peter D. Russin probably did not expect to have to decide who has rights to the Twitter, Instagram, and TikTok handles associated with social-media-forward...more
6/27/2023
/ Chapter 11 ,
Commercial Bankruptcy ,
Corporate Restructuring ,
Intellectual Property Protection ,
Inventions ,
Marketing ,
Personal Brands ,
Social Media ,
Social Selling ,
Summary Judgment ,
Vital Pharmaceuticals
On May 8, cryptocurrency platform Bittrex filed for chapter 11 in Delaware. Bittrex’s first day filings emphasize that, unlike many other crypto filings over the past year, this case is not a “free fall” bankruptcy. In...more
The concept of “property of the estate” is important in bankruptcy because it determines what property can be used or distributed for the benefit of the debtor’s creditors. Defined by section 541 of the Bankruptcy Code,...more
It’s often hard to persuade a bankruptcy court to grant a motion for substantial contribution. Any attorney thinking about making a motion should first ask herself two questions. First, has my work benefitted both my client...more
12/29/2022
/ Alter Ego ,
Bankruptcy Court ,
Bankruptcy Trustees ,
Breach of Duty ,
Chapter 11 ,
Commercial Bankruptcy ,
Contribution Claims ,
Creditors ,
Debtors ,
Fraud ,
Section 503
Another domino has fallen. Earlier this year, we wrote about the challenges facing the crypto industry that resulted in the bankruptcy filings of Three Arrows Capital, Celsius Network, and Voyager Digital. We noted that...more
The ramifications of uneven increases to fees in chapter 11 bankruptcies continue to ripple through federal courts.
As we discussed previously, Congress enacted legislation in 2017 that temporarily increased U.S....more
A bankruptcy court ruled that a creditor didn’t need to seek derivative standing to sue a liquidating trustee. The creditor, himself a trustee of the debtor’s employee stock-option plan, had standing to sue without prior...more
We have previously written about Siegel v. Fitzgerald, No. 21-441, the Supreme Court case considering the question of whether the 2018 difference in fees between Bankruptcy Administrator judicial districts and U.S. Trustee...more
It’s been a hard year for cryptocurrency. The values of most cryptocurrencies, including major coins such as Bitcoin and Ethereum, have continued to tumble. In fact, the price of one stablecoin, which is a form of...more
The Fifth Circuit recently dismissed an appeal of a confirmation order as equitably moot. The decision was based on three key factors: the appellant hadn’t obtained a stay pending appeal, the plan had been substantially...more
As a result of Purdue Pharma’s proposed plan of reorganization, and the ongoing opioid epidemic that continues to grip the nation, the debate over non-consensual third-party releases has gone mainstream despite being a...more
Article I, Section 8 of the United States Constitution gives Congress the power to “establish . . . uniform Laws on the subject of Bankruptcies throughout the United States.” While Congress has general authority to...more
A recent decision applied the ordinary course of business defense to a preferential transfer claim where the parties had engaged in only two transactions. In re Reagor Dykes Motors, LP, Case No. 18-50214, Adv. No. 20-05031,...more
Another case shows the perils of waiting until the final minutes to meet a court deadline. In re U-Haul, 21-bk-20140, 2021 Bankr LEXIS 3373 (Bankr. S.D. W. Va. Dec. 10, 2021).
The debtor is a well-known truck rental...more